Closing A Title Insurance Agency

You have decided to close your title agency. Regardless the reason, proper planning can facilitate the process and minimize the potential for troublesome issues down the road.

Contact the Insurance Companies

Contact the insurance companies that you
represent and advise them of your decision to close the agency and ask them for guidance on the proper handling of
the records for the policies issued for their company. The Florida Statutes
require the title agent or insurer to maintain records pertinent to the issuance
of the title policies. If your title agency will be closed, the insurer may need
to make arrangements for maintaining your files.

Escrow Funds

The title agency escrow account needs to remain open until all outstanding
checks have cleared. You should contact your attorney to arrange to transfer the funds in any open escrow accounts to the appropriate underwriter, or for remittances outstanding for over five years, to the Florida Unclaimed Property Fund.

Notify the Department of Financial Services

Once you have made the arrangements noted above, send a letter on your title
agency letterhead to the Department of Financial Services, along with your
license. The letter must indicate you want the title agency's license terminated, the last day business was conducted by the title
agency, and should include the location of your records and contact information for the records custodian.

The letter of termination can be mailed to:
Florida Department
of Financial Services
Bureau of Licensing
200 East Gaines
Street
Tallahassee FL 32399-0319

Or E-mailed:

Submit a Change of Address

Florida law states that every licensee
must notify the department within 30 days
after a change of name, phone number, e-mail
or residence address, principal business or
mailing address. Closing an agency indicates
that you have relocated your principal place
of business and possibly changed your
mailing address as well. Simply log in to
your
MyProfile account and submit the change.

Agency Files and Records

Florida law requires every licensee to
preserve books, accounts and records
pertaining to a premium payment for
at least three
years after payment. Any agent closing an
insurance agency must make provisions for
the records to be available for inspection
in accordance with law. You can comply with
the law by transferring the files to a new
servicing agent or returning the files to
the appropriate insurance company. Keep
detailed records of any files you have
transferred. Do not throw
documents containing confidential or
personal information into the garbage
without following the appropriate
destruction methods.

Consumer Notification

Notify the department’s Division of
Consumer Services of your agency’s closing
in the event any of your clients contact them.
You can do this by going to
AskFLDFS and selecting "Consumer
Services" as the recipient.

Contact Your Landlord

Any lease or rental agreement entered
into by you for conducting your agency
business likely remains binding until both
parties agree to end the contract. Closing
the agency doors and not returning to the
location does not end your obligation to pay
rent. This is true of all rental agreements,
including those for computers, postage
machines, copiers, telephone systems and fax
machines. You are responsible for paying all
utility bills until the utility company
terminates or transfers the account. If you
have any questions regarding these matters,
seek private legal counsel.